What exactly is a KPI?

Business intelligence is the study of a company’s data with the goal of enabling managers and owners to make better decisions. One section of business intelligence commonly talked about is business performance, more specifically the tool used to measure it – Key Performance Indicators (KPIs). Do you know what KPIs are? Below is an overview of KPIs for business. Define: KPI The Key Performance Indicator (KPI) is a tool used to measure performance of a business or employees. Many businesses use this tool to look at either the overall performance and success of all or specific operations. To many, the terms performance and success are synonyms. How do KPIs work? Most modern versions of this tool come in the form of software applications that track specific data and criteria set by managers or owners. The software allows them to compare these criteria, commonly referred to as Score Cards, with the established goals and gauge overall performance or success. This data, usually collected from spreadsheets, databases or even manual data entry, is displayed to the user in an easy to read format called a dashboard. The dashboard is typically a graph or similar visual display. A common dashboard is the traffic light. Let’s say for example that a company is measuring the success of their latest marketing campaign. A green light indicates that the expected number of conversions is being met or exceeded, yellow means actual conversions are slightly below normal and red means actual are well below expected. Benefits of KPIs The biggest benefit of these tools is that they allow users to easily gauge the performance of a business. Beyond that you can set many KPIs with triggers that will alert you when the measurements are poor. This will allow the company to figure out ways to fix issues before they can cause bigger problems. Effective KPIs For many businesses, effective KPIs are tailored to the needs of the business. For the majority of businesses, KPIs need to be: Measurable, achievable, specific and result-oriented. The best way for a business to figure out the which will be the most effective is for the manager or owner to look at the aspects that are most important to a business. This can be hard to figure out, especially for business owners who often think that everything related to their business is important. A business intelligence expert or IT partner can help define what really matters most and help to implement the tools needed. If you are looking for a better way to measure the success or performance of your business, please contact us today. Published with permission from TechAdvisory.org. Source.

Five password don'ts

Security is an important issue for many business owners and managers. Many work with their IT department or an IT partner to ensure their network and systems are secure from threats. But what about your email, social media and bank accounts? The weakest link of these online accounts is your password, hackers know this and that’s what they target. Do you take steps to ensure that you have a strong password? Read more...

Five great VoIP features

It’s safe to say that many business owners and managers are aware of Voice over Internet Protocol (VoIP) phone systems, and in fact, many businesses now use it. There are many more still using older phone systems however. If you are one of these companies, and are curious about VoIP, you may be interested to know more about the various features offered by providers. Read more...

Small change to Google Search may be big

One of the most useful Internet tools is the search engine. When it comes to searching on the net, the vast majority of users prefer Google. If you have used Google Search in the past, you likely know that the results page is always evolving, usually for the better. The most recent change, while small, could prove to be an important one that you should know about. Read more...

4 non-marketing benefits of social media

To many business owners, social media is one of the most important marketing tools at their disposal. It’s true that a well executed social media strategy can make all the difference, while also giving smaller companies a way to compete with industry giants. What many may not realize is that social media can be much more than just a marketing platform. Read more...